When you inherit a sole proprietorship and continue it, can you take over the licences? What can be succeeded and what must be re-obtained

In short: a licence held by a sole proprietor is granted to that person, so it is not automatically passed to the heirs as part of the estate when the person dies. Whether it can be taken over differs by licence. For a construction business permit, the 2020 (Reiwa 2) amendment created an approval system for inheritance, and if you apply within 30 days after the death of the deceased and obtain approval, you can succeed to the status (Construction Business Act, Article 17-3). For a food business and the like, a notification of succession of status by inheritance, merger or division can be made (Food Sanitation Act, Article 56). On the other hand, a secondhand-goods dealer permit and an industrial-waste treatment business permit have no succession mechanism, and for an heir to continue, in principle a re-obtaining (a new permit) is required. This article is general information and does not judge or guarantee the possibility or deadline of an individual succession. Applications for succession or re-obtaining of a licence are for an administrative scrivener (our office); inheritance registration (the name of real estate) is for a judicial scrivener; inheritance tax and the business-succession tax system are for a tax accountant; and disputes over shares or the division of the estate are for a lawyer. The sale and use of inherited real estate is the field of Yotsuba Real Estate Co., Ltd., a separate business. The administrative scrivener of the Yotsuba group handles support for the succession or re-obtaining of a licence as an independent business.

What happens to a licence when a sole proprietor dies (is the rule that it lapses)?

Many licences are qualifications granted to "that person". Unlike deposits or real estate, they do not become an object to be divided among someone in the division of the estate, and the basic idea is that they lose effect on the person's death. Accordingly, except where there is a special succession provision, an heir cannot "continue using the parent's permit as it is".

In recent years, however, mechanisms for succession have been arranged licence by licence so that a business is not stopped. Construction business and food business have gained succession provisions, while secondhand-goods dealing and industrial-waste treatment business still have none—the treatment is the opposite depending on the field. The overall picture of the estate is covered separately in How to investigate estate property and an inventory, and the flow of changing the name of real estate in The flow of inheritance registration.

Type	For an heir to continue
There is an approval of succession (e.g. construction permit)	Apply for approval within the deadline and succeed to the status
There is a notification of succession (e.g. food-business permit)	File a notification without delay and succeed to the status
There is no succession mechanism (e.g. secondhand-goods/industrial-waste permits)	In principle re-obtain (a new permit)

Can a construction business permit be succeeded by inheritance (the 2020-amendment approval system)?

Yes. Previously, when an individual construction operator died, the permit lapsed, the heir had to re-obtain a new permit, and during the review there was a gap in the status as a permitted operator. The amended Construction Business Act, which took effect on 1 October 2020 (Reiwa 2), changed this. Article 17-3 of the Construction Business Act provides that, where a construction operator dies, an heir who intends to continue operating all of the construction business the deceased operated may apply to the permitting authority (the Minister of Land, Infrastructure, Transport and Tourism or the prefectural governor) within 30 days after the death of the deceased and obtain its approval.

What matters is the device to avoid a gap period. Where the heir has made this approval application, during the period from the day of the deceased's death until the day of receiving notice of whether or not the approval is granted, the construction permit made to the deceased is deemed to have been made to the heir. In other words, the business can continue even during the review. In addition, an advance approval system is provided for a lifetime business transfer, merger or division (Construction Business Act, Article 17-2).

Scene	Basis	Point
Inheritance on death	Construction Business Act, Article 17-3	Apply for approval within 30 days after death; the status continues during the review
Lifetime transfer, merger or division	Construction Business Act, Article 17-2	Obtain approval in advance and succeed to the status

That said, approval presupposes that the heir's side meets the permit requirements, such as the managing officer of business and the full-time engineer. Because whether the requirements are met is an individual judgment, confirmation at an early stage is essential.

Which permits allow a succession of status, such as a food business?

A permit for a food business and the like under the Food Sanitation Act allows a succession of status by inheritance, merger or division. Article 56 of the Food Sanitation Act provides that, where there is an inheritance concerning an operator, the heir (or, where there are several heirs, the one chosen by the unanimous consent of all) succeeds to the operator's status, and the successor must file, without delay, a notification to that effect with the prefectural governor, etc., attaching a document proving the fact. This succession mechanism was arranged by the amendment that took effect on 1 June 2021 (Reiwa 3), and succession by business transfer was added by the amendment that took effect on 13 December 2023 (Reiwa 5).

The entertainment-venue business (a live house, theatre, etc.) also has a mechanism for the succession of the operator's status, and its notification, by transfer, inheritance, merger or division (Entertainment Venues Act, Article 2-2). Thus, sanitation-type permits that focus on the operator are a category for which a "succession by notification" is often prepared. Still, the premise is that the permit standards (the sanitation and structure of the facility) continue to be met after succession, and where you change the content of the business, a separate procedure may be required.

Which licences, such as secondhand-goods or industrial-waste, must be re-obtained?

There are also licences that have no succession mechanism, for which an heir must re-obtain a new permit to continue. Typical examples are a secondhand-goods dealer permit and an industrial-waste treatment business permit.

The Secondhand Goods Business Act has no provision for an heir to succeed to an individual's secondhand-goods dealer permit. Where a person who held an individual permit dies, a cohabiting relative, etc., must return the permit certificate to the public safety commission within 10 days from the day of death (Secondhand Goods Business Act, Article 8), and for an heir to continue the secondhand-goods business, they must themselves newly obtain a permit.

The industrial-waste treatment business permit (collection/transport business and disposal business) likewise has no system of succession by inheritance for a sole proprietor. For an heir to continue, a new permit application is required. Note that there is an approval system for the merger or division of a corporation (Waste Management Act, Article 15-4), and an industrial-waste treatment facility permit has a system such as assignment—so even within the same Waste Management Act, the treatment of a "business permit" and a "facility permit" differs.

Licence	For an heir to continue	Point on death
Secondhand-goods dealer permit	Re-obtain a new permit	Return the permit certificate within 10 days (Secondhand Goods Business Act, Article 8)
Industrial-waste treatment business permit	Re-obtain a new permit	Merger/division has an approval system (Waste Management Act, Article 15-4)

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Are there deadlines for the notification or approval of succession (so as not to stop the business)?

Yes. Missing a deadline can mean the succession system cannot be used and the business has to be stopped once and re-obtained. The main ones are organised below (confirm details and the starting date with the competent authority).

Licence	Procedure	Rough deadline
Construction business permit	Application for approval of inheritance	Within 30 days after the death of the deceased (Construction Business Act, Article 17-3)
Food-business permit	Notification of succession of status	Without delay (Food Sanitation Act, Article 56)
Secondhand-goods dealer permit	Return of the permit certificate	Within 10 days from the day of death (Secondhand Goods Business Act, Article 8) / continuation requires a new permit

The construction permit's "within 30 days" is especially short, and preparation must begin immediately after the inheritance arises. Confirming whether the heir can meet the permit requirements (the managing officer of business, the full-time engineer, etc.) proceeds at the same time. Because the judgment of deadlines and requirements is highly individual, we keep to general information; please confirm the specific possibility with the competent authority and a qualified professional.

Who do you ask for what in licensing, registration, tax and disputes (division of roles)?

The inheritance and succession of a business spans several specialties—licensing, registration, tax and disputes. The basis is that you contract with each as an independent business, separately. The administrative scrivener of the Yotsuba group handles, as an independent business, the approval/notification of succession of a licence, the new-permit application for re-obtaining, and support for confirming the permit requirements.

Who to ask	Main role
Administrative scrivener (our office)	Support for succession or re-obtaining of a licence
Judicial scrivener	Inheritance registration (change of the name of real estate)
Tax accountant	Inheritance tax, quasi-final return, business-succession tax system
Lawyer	Division of the estate, shares and other contested matters
Real-estate agent (our company, a separate business)	Sale and use of inherited real estate

On the sale and use of inherited real estate, please also see Inheritance and Real Estate. The purchase and brokerage of real estate is handled by Yotsuba Real Estate Co., Ltd., a separate business. Please also see our Services, Engagement Flow and Fee Schedule. You contract with each professional as an independent business, and we receive no referral fee from one another.

FAQ

Q. Can I continue the business using my parent's construction permit as it is?
A. The amendment that took effect on 1 October 2020 (Reiwa 2) created an approval system for inheritance. If you apply for approval to the permitting authority within 30 days after the death of the deceased, you can succeed to the status, including during the review (Construction Business Act, Article 17-3). However, the premise is that the heir meets the permit requirements, such as the managing officer of business and the full-time engineer. Because the deadline is short, an early start is important.

Q. Can a restaurant permit be taken over by inheritance?
A. Yes. Under Article 56 of the Food Sanitation Act, a succession of the operator's status by inheritance, merger or division is allowed, and the successor files, without delay, a notification attaching a document proving the fact. Where there are several heirs, the successor is chosen by the unanimous consent of all. The premise is that the facility's sanitation and structure standards continue to be met after succession.

Q. Can a secondhand-goods or industrial-waste permit be inherited?
A. Neither has a succession mechanism by inheritance, and for an heir to continue, in principle a new permit must be re-obtained. For secondhand goods, the permit certificate must be returned within 10 days from the day of death (Secondhand Goods Business Act, Article 8). The industrial-waste treatment business permit also requires a new acquisition, and merger/division has a separate approval system (Waste Management Act, Article 15-4).

Q. Can I ask for the succession of a licence together with inheritance registration and inheritance tax?
A. Because of the demarcation of professions, you contract with each as an independent business, separately. Succession or re-obtaining of a licence is by an administrative scrivener, inheritance registration of real estate is by a judicial scrivener, inheritance tax and the business-succession tax system are by a tax accountant, and a contested division of the estate is by a lawyer. Our office receives no referral fee, and within the scope of general information we guide you on organising the window.

Sources (Primary Information)

• e-Gov Law Search / Ministry of Land, Infrastructure, Transport and Tourism, "Construction Business Act", Article 17-2 (approval of transfer and assignment, etc.) and Construction Business Act, Article 17-3 (approval of inheritance: application within 30 days after the death of the deceased, succession of status by approval, deemed continuation from the day of death until the day of notice of the grant or refusal of approval). The amended Construction Business Act took effect on 1 October 2020 (Reiwa 2) (accessed 2026-10-03)
• Ministry of Land, Infrastructure, Transport and Tourism, "Guidelines for Construction Business Permit Administration" (operation of the approval system for business succession, etc.) (accessed 2026-10-03)
• e-Gov Law Search / Ministry of Health, Labour and Welfare, "Food Sanitation Act", Article 56 (succession of the operator's status by inheritance, merger or division and a notification without delay; where there are several heirs, chosen by the unanimous consent of all). The succession provision took effect on 1 June 2021 (Reiwa 3), and succession by business transfer on 13 December 2023 (Reiwa 5) (accessed 2026-10-03)
• e-Gov Law Search / National Police Agency, "Secondhand Goods Business Act", Article 8 (return of the permit certificate; where a permit holder dies, a cohabiting relative, etc., returns it within 10 days). No provision for succession by inheritance is placed (accessed 2026-10-03)
• e-Gov Law Search / Ministry of the Environment, "Waste Management and Public Cleansing Act", Article 15-4 (approval of the merger or division of an industrial-waste treatment business). The industrial-waste treatment business permit has no provision for succession by inheritance or assignment (accessed 2026-10-03)
• Small and Medium Enterprise Agency, "Business Succession Guidelines" and "SME M&A Guidelines" (general points to note on the succession of licences) (accessed 2026-10-03)

This article is general information and does not judge or guarantee, for an individual licence, the possibility of succession by inheritance or business succession, the need for or deadline of approval or notification, conformity with the permit requirements, or the prospect of re-obtaining. The need, deadline and starting date of succession or re-obtaining differ by the type of licence and the competent authority, and the concrete standards are set by each statute, notice and local-government operation. Support for the approval/notification of succession of a licence and the new-permit application for re-obtaining is handled by the administrative scrivener of the Yotsuba group as an independent business; registration such as inheritance registration is by a judicial scrivener; inheritance tax, the quasi-final return and the business-succession tax system are by a tax accountant; contested matters such as the division of the estate are by a lawyer; and the sale and use of inherited real estate is by Yotsuba Real Estate Co., Ltd., a separate business, each contracted separately. Our office receives no referral fee. Individual judgements are made by a qualified professional after a meeting. Written by Joji Uramatsu, administrative scrivener and licensed real estate broker.